Steve Alexander

Implications of Best Buy's Carphone Warehouse Investment

Thanks for the quick analysis. Remember that CW also owns a large network and phone line business in addition to their retail operations, so perhaps the corporate ROE of 10% is an understatement, considering Best Buy only bought 50% of the retail business.

I share your concerns about over focusing on growth, but this seems like a prudent move. Best Buy has the balance sheet to do it, and Europe is a geographic market they have yet to enter. It's certainly a better entrance strategy than Wal-Mart used!

Steve
magicdiligence.com